Oz Economy Enjoys Healthy Q4 Growth

08 March 2002

Weathering the global economic storm, Australia enjoyed year-on-year economic growth of 4.1% (seasonally adjusted) for the fourth quarter 2001.

Compared with Q3, the nation's gross domestic product rose 1.3% – the biggest quarterly rise for two years, almost twice as fast as economists' predictions and nearly four times the equivalent rate in the US.

Australia's growth reflects high consumer expenditure, rising commodity prices and a booming housing sector spurred by government house-building grants.

Such expansion, plus a rise in inflation above the 2%–3% target, makes it more likely that the Reserve Bank of Australia will raise the base interest rate from its 30-year low of 4.25%.

Data sourced from: BBC Online Business News (UK); Australian Bureau of Statistics; additional content by WARC staff